A review of the Nursing Homes Support Scheme (NHSS) was published in July 2015. Arising out of the review, a recommendation was made to examine the treatment of business and farm assets for the purposes of the financial assessment element of the scheme. The Programme for a Partnership Government also committed to reviewing the NHSS to remove any discrimination against small businesses and family farms.
At present, the capital value of an individual's principal private residence is only included in the financial assessment for the first three years of their time in care. This is known as the three year cap. This cap does not apply to productive assets such as farms and businesses except in cases of sudden illness or disability where specific conditions are met.
It is proposed to amend the scheme to treat farm and business assets in the same manner as the principal private residence where a family successor commits to working the farm or business, i.e. to cap contributions at three years.
The Department of Health has been examining the potential for changes to the treatment of business and farm assets under the Nursing Homes Support Scheme. The Department has had a number of engagements with the Irish Farmers Association (IFA) in this regard. Any changes to the scheme, if approved by Government, will require amendment of the Nursing Homes Support Scheme Act 2009.
A Memorandum for Government setting out the details of the proposed policy change and seeking Government approval to draft the General Scheme of a bill to amend the Nursing Homes Support Scheme Act 2009 has been circulated to other Government Departments for observations.
Currently an asset which has been transferred within 5 years prior to the date on which an application for State support is first made is considered a transferred asset and is included in the financial assessment under the Scheme. There are currently no plans to amend this provision.
